The maximum loss you could bear on Forex investment?
‘Risk Management’ is one of the most important aspect that you should think while investing your own funds.
You don’t just think of how much you could make, but you must also think of how much you could lose.
Do you know how much is the maximum amount you can lose while investing in Forex and CFD*?
The answer is ‘unlimited’.
Note that you can lose more than you invest, depends on the company you invest with and financial instruments you trade.
Stop Out and NBP (Negative Balance Protection) by Online Brokers
Online FX & CFD Brokers try their best to protect its traders from risks.
‘Stop Out’ is the tool to close all open positions automatically when the your account can no longer support the positions you have.
It will simply protect you from too much risks even when you are not monitoring your account.
NBP (Negative Balance Protection) is a type of insurance which protects traders from exceeded losses.
This makes sure you don’t lose more than you deposit to your account, so you can limit your maximum loss to the total deposit amount.
Both Stop Out and NBP exist to protect investors from exceeded losses.
Nowadays, most of the online FX & CFD brokers have both of the conditions for all traders.
You can afford only 100 USD to start with? That’s fine because there are brokers that even accept from $5.
No Deposit Bonus to trade ‘Risk-Free’
If you don’t want to make a deposit at first, but want to try out Online Forex and CFD trading, you can start with ‘No Deposit Bonus’ promotions.
With a ‘No Deposit Bonus’, you can have real fund to start trading online for free.
- No cost involved
- No risk to lose your own funds
- Not a Demo but Real account
You can find the list of No Deposit Bonus promotions here.